An increasing-cost industry will have
A) a perfectly elastic long-run supply curve.
B) a perfectly inelastic long-run supply curve.
C) an upward sloping supply curve in the long run.
D) an upward sloping demand curve in the long run.
Answer: C
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Sticky Cakes is a bakery. A decrease in the wage rate that Sticky Cakes pays its workers
A) does not shift its MC curve or its ATC curve. B) shifts its MC curve downward but not its ATC curve. C) shifts both its MC curve and its ATC curve downward. D) does not shift its MC curve but shifts its ATC curve downward.
What happens in the primary market?
A) newly issued claims are sold by the borrowing firm to the initial buyer B) already issued claims are sold from one investor to another C) primary inputs like electricity are sold D) a corporate financial manager will resell previously issued shares of stock
Other things the same, a country that increases its saving rate increases
a. its future productivity and future real GDP. b. neither its future productivity nor future real GDP. c. its future productivity, but not its future real GDP. d. its future real GDP, but not its future productivity.
Suppose a firm finds that it must raise wages for all of its workers every time it tries to expand its workforce. This means
A. The marginal factor cost curve is below the average cost of labor curve. B. The firm has market power. C. The labor market is perfectly competitive. D. It will produce more than it would in a competitive labor market.